Only have $100 left over each month. Feel like we will never be able to save

[Anonymous]

daycare between two kids is eating almost my whole paycheck. I don't see a way we can start saving until both kids are in school. Feeling defeated at this point.

[Anonymous]

Then start with the $100 each month and don't beat yourself up about it. Daycare years are usually the toughest for those with kids, so if that's all you can do, be happy you can save SOMETHING. Examine your budget, see if here's any fat to trim (takeout/dining out, find a cheaper salon/barber, etc.) This board has tons of suggestions. Once the kids are in school, your monthly outlay will fall, but be aware not all that much if you need before/after care, summer camps, etc. If your incomes rise during that period, put all the raise $ into savings (retirement, emergency, college, etc.) Hang in there, it will get better!

[Anonymous]

You have to go hard core if you want to save. Try it for a month, and see how much of a cushion you can build.

-No eating out. Period.
-Cut back at the grocery store. Try limiting meat/chicken to once a week. Eggs are cheap protein. Ramen noodles are filling--add a couple eggs for protein.
-No booze, beer or wine.
-No online shopping. No trips to Target or the mall.
-Cut off the A/C.

Try hard core and see what kind of savings you can identify. Do not purchase anything unless it's a necessity like food or gas. Write down ALL expenses for the month (keep all receipts). The goal is to barely spend money and to track everything. Honestly, doing this for 2-3 months is best so you have time to accurately track monthly expenses.

It's ridiculously harder than it sounds, but it can be an eye opening experience. If you truly stick to it, you'll see where you are blowing your money.

[Anonymous]

Anonymous wrote:Then start with the $100 each month and don't beat yourself up about it. Daycare years are usually the toughest for those with kids, so if that's all you can do, be happy you can save SOMETHING. Examine your budget, see if here's any fat to trim (takeout/dining out, find a cheaper salon/barber, etc.) This board has tons of suggestions. Once the kids are in school, your monthly outlay will fall, but be aware not all that much if you need before/after care, summer camps, etc. If your incomes rise during that period, put all the raise $ into savings (retirement, emergency, college, etc.) Hang in there, it will get better!

There are a number of other costs that increase when daycare costs decrease. Clothing gets a lot more expensive when they get older. Activities and sports are more frequent and more expensive. You have to arrange care for the no-school days. You might add music lessons. You start paying for their lunches and snacks that used to be provided by daycare (minor cost, but every little thing adds up).

[Anonymous]

Anonymous wrote:

Anonymous wrote:Then start with the $100 each month and don't beat yourself up about it. Daycare years are usually the toughest for those with kids, so if that's all you can do, be happy you can save SOMETHING. Examine your budget, see if here's any fat to trim (takeout/dining out, find a cheaper salon/barber, etc.) This board has tons of suggestions. Once the kids are in school, your monthly outlay will fall, but be aware not all that much if you need before/after care, summer camps, etc. If your incomes rise during that period, put all the raise $ into savings (retirement, emergency, college, etc.) Hang in there, it will get better!

There are a number of other costs that increase when daycare costs decrease. Clothing gets a lot more expensive when they get older. Activities and sports are more frequent and more expensive. You have to arrange care for the no-school days. You might add music lessons. You start paying for their lunches and snacks that used to be provided by daycare (minor cost, but every little thing adds up).

And food! They start eating like adults and them they start eating like two adults! Plan for your grocery budget to double from preschool to 5th grade or so and stay that way until they leave for college.

[Anonymous]

To get a cushion try to spend a week where you don't go to the grocery store- eat all the pasta and boxed canned food you already have and from your garden. Then sell all the things your kiddos have outgrown on craigslist- slings, co-sleepers, etc. Save all of your windfalls too- those two extra paychecks a year, income tax refunds. Once you have a few thousand saved, you will feel better.

[Anonymous]

Just wanted to say that I've been there and it is frustrating. It does get better with time, especially if incomes increase as child care starts to go down. Some of the PP suggestions may be helpful, but I find that when we are really frugal for a few months, we are really just postponing purchases for a later time. For bigger savings, what do you spend on child care? I'm surprised how much some of my friends spend when we have been very happy with relatively lower cost programs housed at a church and YMCA. (And even with that, we couldn't save during peak child care years.)